Interest Rates

guli

BOE interest rates just dropped to 3% :rotfl: :rotfl: :beer: :beer: :j :A :T :rotfl: :cool: :rolleyes:

cogito

1.5%. They must be absolutely bricking it. I doubt that this is much to cvelebrate.

Stavros_3

This is bad news for savers, very bad

isofa

Stavros wrote: »

This is bad news for savers, very bad

Totally agree.

muymalestado

Many, many savers will be working in firms that may be helped by this rate cut. Possibly these savers and others will continue to be able to save and others will be able to spend. On the whole the economy may recover sooner rather than later and that should benefit most of us.

isofa

Sounds to me more like boom and bust.

Just a ruse to get the housing market moving, banks will profit obviously too. Even if they do pass on the rate, they'll drop savings rates quicker than adjusting the mortgage rates, so it's always profitable.

And I wonder where inflation will be in 6 to 12 months...

MORPH3US

aardvaak wrote: »

My only form of income is from tracker savings

Hope you don't mind me asking...

Is that through choice or because you cannot work / have retired?

Nothing to do with the thread really, I can just never imagine being able to live off my savings interest rather than work so I assume there is a reason you don't work.

sarah_elton

itsnever2lateisit? wrote: »

1.5% reduction!!!!!!!!!!!!!!!!!!!!!!!!
Guess they dont want folk to save

No - at the moment saving is the last thing they want you to do.

Count_Dante

This cut just begs the question: what on earth is the 'interest rate', and if cutting it to 3% is a fine thing, why not cut it to zero for an even better thing?

Peston had something to say about this a few days ago:
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/11/why_interest_rates_arent_falli.html

Jonbvn

OP please do not blame people who have mortgages for being happy about this cut. After all where do you think the interest on your savings comes from?

As much as borrowers must consider the possibility of big interest hikes, when they take on a mortgage, people in your position must consider the possibility of a significant interest rate cuts. IMHO, this is not the last cut we will see. I am expecting rates to go below 2% in the New Year.